Easterly Government Properties Buys San Jose VA Office for $70MM

Easterly Government Properties, Department of Veterans Affairs San Jose Community-Based Outpatient Clinic, VA Palo Alto Health Care System, Veterans Health Administration

(EDITOR’S NOTE: According to public documents, the transaction closed on July 12, 2018, and the price was $70 million, or just over $777 per square foot.)

WASHINGTON, D.C. (May 8, 2018) – Easterly Government Properties, Inc. (NYSE: DEA), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, announced today that it has agreed to acquire a 90,085-square foot Department of Veterans Affairs (“VA”) San Jose Community-Based Outpatient Clinic (“VA – San Jose”).

VA – San Jose, part of the VA Palo Alto Health Care System, is an outpatient clinic that was
completed in the first quarter of 2018. The state-of-the-art facility is leased to the VA for an initial, non-cancelable lease term of 20 years through February 2038.

The brand new advanced facility consists of medical clinic and administrative space distributed over three floors. Services performed at VA – San Jose include primary care, mental health care, women’s health, audiology and speech pathology, podiatry, optometry and dermatology. The VA also promotes the use of group classes and instruction by incorporating state-of-the-art training and patient education spaces throughout the facility.

“We are pleased to add our third VA facility with the upcoming acquisition of the San Jose regional outpatient clinic,” said William C. Trimble III, Easterly’s Chief Executive Officer. “It gives me great pride to partner with the VA and own a facility that provides vital services to a portion of the approximately 22 million U.S. military veterans living throughout the United States today.”

The VA is a cabinet-level federal agency that provides America’s largest integrated healthcare system with over 1,700 sites of care, serving 8.97 million veterans annually. The VA employs nearly 350,000 people, all dedicated to providing infrastructure and support to U.S. veterans and their families.

The VA is a service-based organization with a sizeable portion of its annual budget going towards the Veterans Health Administration (VHA). The VHA offers a broad range of primary care, specialized care, and related medical and social support services for veterans in need through the 124,000 health care professionals throughout the VA. The VA, as widely reported, is undergoing a transformation in the design and functionality of its healthcare facilities. The VA is shifting much of its medical treatment from traditional inpatient hospital facilities to state-of-theart Class A outpatient facilities, often developed and owned by the private sector.

The VA Palo Alto Healthcare System provides a full range of patient care services with state-ofthe-art technology as well as education and research. The entire healthcare system serves more than 67,000 enrolled veterans within the region and provides a range of medical services, including medicine, surgery, psychiatry, rehabilitation, neurology, oncology, dentistry, geriatrics, and extended care. This healthcare system also houses a variety of regional treatment centers, including the Spinal Cord Injury Center, the Western Blind Rehabilitation Center, the National Center for Post-Traumatic Stress Disorder, and others.

“The team at Easterly uses its definable edge in the underwriting and acquiring of U.S.
Government leased assets to strengthen its portfolio of mission critical properties,” said Darrell Crate, Easterly’s Chairman. “These assets generate cash flows that are backed by the full faith and credit of the U.S. Government, which we believe will continue to provide investors with a stable and attractive total return opportunity.”

About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.